Written by Steve Martin Smith
WHICH COMES FIRST - THE OFFER OR THE PRE APPROVAL?
Answer: PRE APPROVAL.
You should apply as soon as you know you are interested in buying. Ideally, come ready to meet your REALTOR with one in hand. Reading reviews on other people’s experiences can be very helpful in selecting a lender. Lenders are not created equal; they can often offer different products and options for homeownership. To find one right for your needs, take the time to read reviews – make some calls, and have a sit-down. Doing the homework upfront and coming prepared is going to be a powerful tool for your REALTOR when it comes time to write an offer and couls save you endless trips looking at homes that do not fit your budget.
A pre-approval or proof of funds in hand are among the ways to assure that you won’t miss an opportunity when one presents itself. Having to take the time to get a pre-approval after you think you've found the must-have home of your dreams - can very well cost you the opportunity – especially over a weekend.
Just this week I had a buyer lose the perfect home of his dreams because he wasn’t in a proper position to have his offer accepted. His offer was solid and well written to be a very strong offer, but he didn’t have proof of funds. The other offer on the table had a pre-approval and was accepted. He ended up being the backup offer, the likelihood of now becoming first up is very, very slim.
GOLDEN TIP: FIND A LENDER THAT OFFERS TO DO ALL THE WORK UPFRONT and preferably someone who can offer in house underwriting AND WILL ANSWER THEIR PHONES AFTER HOURS.
The easier and more secure you can make your mortgage process for the seller – the more attractive you look to them as a buyer. OFFERS CHOSEN ARE NOT ALWAYS ABOUT THE BEST PRICE. A seller does not want to waste time off the market with their fingers crossed hoping you will be able to obtain financing.
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